The surge in global pulp and paper prices have prompted Indian key players to increase domestic paper prices
The paper prices in India are currently witnessing an uptrend due to significant rise in the costs associated with raw materials, transportation, and other operational requisites. This increase is primarily driven by the escalating prices of hardwood pulp and waste paper. Major players in the industry such as JK Paper, APP, Bindal Papers, and Khanna Paper have been compelled to issue circulars announcing price hikes. Although the price hikes have some variations, the average price elevation is around 1,500/tonne of paper.
JK Paper has highlighted an unusual spike in the cost of essential raw materials such as pulp and wood, further exacerbated by geopolitical tensions affecting global trade routes, particularly in the Red Sea region. These factors have significantly increased freight costs, placing considerable financial pressure on the company. Despite attempts to absorb some of these costs internally, JK Paper has found it necessary to pass a portion onto the consumers to maintain product sustainability.
Further price adjustments are expected in other product varieties such as cupstock, FBB, and VAP, as indicated by communications from JK Paper. The ongoing adverse market conditions, which have lasted longer than anticipated, continue to erode long-term value and compress margins within the industry. Additionally, Shreyans Industries has announced an immediate increase in the ex-mill price of all its products by Rs.1 per kg due to similar pressures.
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Although the key players have been urging their respective partners for devising a strategical implementation to downturn the urgency of lifting the paper prices, currently there is no other way for sustenance. As per experts, well-operated pulp and paper mills that produce high-quality papers and packaging boards are striving to protect their margins and improve business performance.
